eCommerce Permits & Licenses in San Diego, California

Required to form LLC. Statement of Information (Form LLC-12) due within 90 days of formation ($20 fee, biennial renewal $20).

Initial and renewal filing required for all LLCs.

Primary registration via county clerk; state SOS for name availability. eCommerce DBAs common if using brand ≠ LLC name.

Required for most eCommerce selling physical products. Digital downloads/services generally exempt. Apply online via CDTFA portal.

Registers for withholding, UI, ETT, SDI. eCommerce LLCs need if hiring CA-based workers (including contractors >$600/year).

Post-Wayfair (2018), remote eCommerce sellers with economic nexus ($500k CA sales) must register and collect/remit sales/use tax.

All CA LLCs pay $800/year minimum tax + gross receipts fee if >$250k receipts (tiered: $900-$11,790).

All eCommerce businesses selling taxable goods in California must obtain a seller's permit. This includes online retailers. Registration is free but required even if no sales tax is currently collected. Effective immediately upon engaging in business. Source: CDTFA Publication 109, https://www.cdtfa.ca.gov/pubs/guides/pt109/guide.htm

All LLCs doing business in California must pay an annual $800 minimum franchise tax regardless of income. Additional LLC fee based on gross revenue from California sources: $900 (>$250K), $2,500 (>$500K), $6,000 (>$1M), $18,000 (>$5M). Due by April 15 each year. Source: CDTFA LLC Fees page, https://www.cdtfa.ca.gov/taxes-and-fees/llcfees.htm

Employers must register with EDD to withhold California personal income tax from employee wages. Registration includes DE 1 form. Applies to all employers, including LLCs. Source: EDD Employer Registration, https://edd.ca.gov/taxes/employers.htm

Paid by employer only. New employers pay 3.4% for first 1–3 years. Rate adjusts based on layoff history. Required for all employers with employees in California. Source: EDD UI Tax Information, https://edd.ca.gov/unemployment/employer_tax_information.htm

California LLCs are pass-through entities. Owners report income on personal returns (Form 568). The LLC must file Form 568 annually even if no tax is due. Applies to all LLCs doing business in California. Source: FTB Form 568 Instructions, https://www.ftb.ca.gov/forms/2023/2023-568-instructions.pdf

Employers must file Form DE 9 (Combined Quarterly Wage Report and Withholding Tax Statement) and DE 9C (Wage Detail) each quarter. New employers pay UI tax at the standard rate until experience-rated.

Most cities and counties require a business license or privilege tax certificate. Examples: Los Angeles Business Tax Registration ($36 annual fee), San Francisco Business Registration ($81–$117). No statewide fee; check local government website. Source: California Secretary of State Local Government Directory, https://www.sos.ca.gov/business-programs/local-government-websites

eCig tax of $0.57 per gram of nicotine or $0.0667 per milliliter of liquid (whichever greater). Requires registration with CDTFA. Effective June 9, 2021. Source: CDTFA eCig Tax Overview, https://www.cdtfa.ca.gov/taxes-and-fees/electronic-cigarette-tax.htm

Applies to sales of wine, beer, or distilled spirits. Requires seller's permit and compliance with ABC licensing. Excise tax rates vary by beverage type. Source: CDTFA Liquor Tax, https://www.cdtfa.ca.gov/taxes-and-fees/liquor-tax.htm

Includes cultivation tax and cannabis excise tax (15%). Requires registration with CDTFA and compliance with Bureau of Cannabis Control. Effective January 1, 2018. Source: CDTFA Cannabis Tax, https://www.cdtfa.ca.gov/taxes-and-fees/cannabis-tax.htm

All businesses operating in LA require a Business Tax Registration Certificate (BTRC). eCommerce qualifies if nexus exists (sales, employees, inventory in city).

eCommerce businesses in unincorporated areas need this; not required if solely within city limits.

Limits: no customer visits, <25% home space used, no exterior storage. Zoning must permit (e.g., R zones).

Use ZIMAS tool for self-check; formal letter required for compliance verification. eCommerce typically allowed in most commercial/residential zones.

Required for all commercial alarms connected to LAPD dispatch.

eCommerce rarely triggers unless high-volume electronics/chemicals.

Not applicable to purely online/home-based eCommerce without physical signage.

Certificate of Occupancy issued upon final inspection.

Not applicable to non-food eCommerce.

California Labor Code §3700 requires all employers with one or more employees to carry workers' comp insurance. Sole proprietors without employees are exempt but may elect coverage. Out-of-state policies not valid in California.

Not legally required by California for general business operations, but strongly recommended for eCommerce businesses due to risk of property damage or bodily injury claims. Some local jurisdictions or lease agreements may require it.

Not legally required in California for eCommerce businesses. However, recommended for businesses providing advice, digital services, or design work where errors could lead to client losses.

No general surety bond requirement for typical eCommerce businesses in California. Required only for certain regulated professions. Most online retailers do not need a surety bond unless engaging in regulated services.

California Vehicle Code §11680 requires commercial auto insurance for vehicles used in business. Personal auto policies do not cover business use. Minimum liability limits: $15,000 bodily injury per person, $30,000 per accident, $5,000 property damage.

California does not legally require product liability insurance, but it is strongly recommended for eCommerce businesses selling physical goods. Sellers may be held strictly liable under California Civil Code §1714 for defective or unsafe products.

Only applies if the eCommerce business sells alcohol. Requires a valid ABC license and proof of liquor liability insurance (typically $1M minimum). Not applicable to standard eCommerce businesses not selling alcohol.

Mandatory registration with EDD for State Unemployment Insurance (SUI), Disability Insurance (DI), and Paid Family Leave (PFL). Part of employer obligations under California Unemployment Insurance Code §1080.

Not a statutory mandate, but strongly recommended. Required by many platforms and payment processors. Essential for CCPA/CPRA compliance.

Single-member LLCs with no employees may use the owner’s SSN, but obtaining an EIN is recommended for banking and vendor purposes. Required for opening a business bank account and filing federal taxes if employing staff.

eCommerce businesses must report all online sales revenue. LLCs do not pay federal income tax directly unless taxed as a corporation. S-corps must file Form 1120-S annually.

No federal sales tax requirement. However, federal court rulings (South Dakota v. Wayfair, 2018) allow states to require remote sellers to collect sales tax based on economic nexus. This affects eCommerce businesses selling across state lines.

Applies to all employers with employees. eCommerce businesses with warehouse staff, customer service centers, or home-based employees must maintain safe work environments, post OSHA poster, and report work-related injuries. No requirement for sole proprietors with no employees.

While DOJ has not issued final web accessibility rules, courts consistently interpret Title III of the ADA to cover public-facing websites, especially eCommerce sites. Numerous lawsuits have targeted online retailers for inaccessible checkout processes. WCAG 2.1 AA is the de facto standard.

eCommerce businesses must avoid deceptive advertising, disclose material connections (e.g., influencer marketing), honor refund policies, and comply with the Mail, Internet, and Telephone Order Rule (requires shipping within stated time or obtaining customer consent for delays).

Applies to all commercial messages. Requires clear identification as an ad, valid physical address, working unsubscribe link, and no false subject lines. Does not require prior consent but mandates easy opt-out.

All U.S. employers must complete Form I-9 for each employee. Applies to remote and in-person workers. No e-verify requirement at federal level unless contracting with federal agencies.

Applies to eCommerce businesses with employees. Requires payment of federal minimum wage ($7.25/hr), overtime (1.5x for >40 hrs/week), and proper classification of employees vs. independent contractors. Applies if annual sales exceed $500,000 or if engaged in interstate commerce (which most eCommerce businesses are).

Covers eligible employees for up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Most small eCommerce businesses do not meet the 50-employee threshold.

Applies to eCommerce sellers of products like lithium-ion batteries, aerosols, or pesticides. May require hazardous waste generator registration if storing or disposing of such items. Most general eCommerce retailers not handling such goods are exempt.

Telephone Consumer Protection Act (TCPA) requires prior express written consent for automated calls or texts. Applies to eCommerce businesses using SMS marketing or robocalls. Do-Not-Call list compliance required for live calls.

eCommerce sellers of physical goods must ensure products meet federal safety standards. Requires a Certificate of Compliance (CPC) for children’s products. Applies to all sellers, including private label and dropshipping models.

Required for all eCommerce sellers with California customers. Must register with CDTFA and collect tax on taxable goods/services. Nexus applies even without physical presence.

All California LLCs must file a Statement of Information (Form LLC-12) every 2 years. The first filing is due within 90 days of formation; subsequent filings are due every 2 years on the anniversary of the initial filing month.

Many California cities require an annual business tax registration and renewal. For example, Los Angeles requires renewal by July 1 each year. Check with the city or county where the business is located or conducts business.

A seller's permit (now called 'California Sales Tax Permit') is required for any business selling taxable goods. It does not expire but must be kept current. Changes in address, ownership, or business structure must be reported within 20 days using CDTFA Form BOE-401-A.

While obtaining an EIN is a one-time action, it is required for ongoing federal tax compliance. LLCs with employees must file quarterly Form 941 and annual Form 940. Even single-member LLCs must use EIN for employment or excise tax filings.

Self-employed individuals and LLCs taxed as sole proprietorships or partnerships must make quarterly estimated tax payments using Form 1040-ES.

California requires quarterly estimated tax payments for individuals and pass-through entities like LLCs. Use Form 540-ES for individuals or Form 568-ES for LLCs taxed as corporations.

Employers must display current labor law posters, including: Minimum Wage, Sexual Harassment Prevention, Workers' Compensation, Paid Family Leave, and Cal/OSHA Notice. Posters must be in English and other languages spoken by employees if applicable.

All California employers must have a written Injury and Illness Prevention Program (IIPP). The program must be reviewed annually and updated as needed. Includes employee training, hazard communication, and accident investigation procedures.

All California employers must carry workers' compensation insurance, even if only one employee. Sole proprietors without employees are not required but may choose coverage.

Many cities (e.g., San Francisco, San Diego) require the local business license to be visibly posted at the business location. For eCommerce businesses without a physical storefront, this may not apply unless operating from a registered physical address.

Businesses must keep invoices, sales records, exemption certificates, and tax returns for at least 4 years. Digital records are acceptable if accurate and accessible.

IRS recommends keeping employment tax records for at least 4 years after the tax is due or paid, whichever is later. General business records (e.g., income, deductions) should be kept for at least 3 years.

eCommerce businesses selling tangible personal property into California must register with CDTFA to collect and remit sales tax. Registration is one-time but requires updates if business details change.